MORNBFI Vol. 1 - Planters Development Bank

APP. Q-808.12.31Sec. 11. Conditions of the Authorityto Issue Long-Term Commercial Papersa. During the effectivity of theunderwriting agreement, should the issuerfail to pay in full any interest due on orprincipal of long-term commercial paperupon demand at stated maturity date, theAuthority to Issue Long-Term CommercialPapers shall be automatically suspended.The underwriter shall, within the nextworking day, notify the SEC thereof, andthe SEC shall forthwith issue a formalCease-and-Desist Order enjoining boththe issuer and the underwriter from furtherissuing or underwriting long-termcommercial papers.b. Upon the expiration of theunderwriting agreement, it shall be theresponsibility of the issuer to notify the SECthat it failed to pay in full any interest dueon, or principal of, long-term commercialpaper upon demand at stated maturity dateand has accordingly automaticallysuspended the issuance of its long-termcommercial papers. Within the nextworking day, the SEC shall forthwith issuea formal Cease-and-Desist Order enjoiningthe issuer from further issuing long-termcommercial papers.c. Whenever necessary to implementthe monetary and credit policiespromulgated from time to time by theMonetary Board of the BSP, the SEC maysuspend the authority to issue long-termcommercial paper, or reduce theauthorized amount thereunder, orschedule the maturities of the registeredlong-term commercial paper to be issued.Sec. 12. Basic Features of RegisteredCommercial Papersa. All registered commercial paperinstruments shall have a standard format,serially pre-numbered, and denominated.The instrument shall state, among others,the debt ceiling of the registrant and a noticethat information about the registrantsubmitted in connection with theregistration, and other reportorialrequirements from the issuer is availableat the SEC and open to public inspection,and that the issuer is not authorized by theBSP to perform quasi-banking functions.b. A specimen of the proposedcommercial paper instrument shall besubmitted to the SEC for approval of thetext thereof.c. The instrument approved by theSEC shall be printed by an entity authorizedby the SEC and shall be released by theSEC to the issuer.Sec. 13. Minimum Principal AmountThe minimum principal amount of eachregistered long-term commercial paperinstrument shall not be lower than theamounts indicated in the followingschedule:a. Up to two years P100,000b. Over two years but lessthan four years 50,000c. Four years or more 20,000Sec. 14. Fees. Every registrant shallpay the following fees:a. Upon application for registration,a filing fee of 1/20 of one percent 1% basedon total commercial paper proposed to beissued, but not to exceed P75,000.b. For issuers of commercial papersexempt under Section 8 hereof, an annualexemption fee of P10,000.Sec. 15. Periodic Reportsa. Issuers of registered long-termcommercial papers, through theirunderwriters and those exempt underSection 8 hereof, shall submit the followingreports in the form prescribed by the SEC:1) Monthly reports on long-termcommercial papers outstanding as at theend of each month, to be submitted withinten (10) working days following the end ofthe reference month;Q RegulationsAppendix Q-8 - Page 6Manual of Regulations for Non-Bank Financial Institutions